Definition
Insider Definition
An insider at a publicly traded company is a person who, either directly or indirectly, has access to material nonpublic information about the company. This includes directors, officers, significant shareholders, and employees with access to confidential information. An insider is required to comply with federal and state laws and regulations governing the use of such information, including insider trading laws. Insiders must also abide by their company’s insider trading policies. Insiders must make all reasonable efforts to keep confidential information confidential, and must not use such information for their own personal gain or to benefit other parties. Insiders must also report any trades they make in the company’s stock to the SEC in a timely manner.
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